Spearmint Energy, a next‑generation company dedicated to delivering stable, secure and cost‑effective large‑scale battery storage solutions to the power grid, has closed over $250 million in financing and commenced construction on two new Battery Energy Storage Systems (BESS) in Texas’s ERCOT market. The projects—Tierra Seca, a 100 MW/200 MWh facility near Del Rio, and Seven Flags, a 100 MW/200 MWh facility near Laredo—will together provide 200 MW of power and 400 MWh of storage capacity once operational.
The financing package comprises three components. Manulife has provided $59 million in Construction‑to‑Term Loan (CTL) facilities. East West Bank and Investec Inc. have together extended $95 million in Tax Equity Bridge Loan (TEBL) facilities, with both institutions acting as Coordinating Lead Arrangers, Joint Bookrunners and Green Loan Structuring Agents; Investec will also serve as Administrative Agent for the TEBL facilities. Sugar Creek Capital has committed $98 million in tax equity. East West Bank will act as Collateral Agent and Depository Bank for both the CTL and TEBL facilities, ensuring seamless management of construction and bridge financing proceeds.
Andrew Waranch, Founder, President, and Chief Executive Officer of Spearmint, mentioned, “We are thrilled to secure this financing for Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure. As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
Cory Magnuson, Chief Financial Officer of Spearmint, stated, “Manulife, East West Bank, Investec and Sugar Creek Capital are globally recognized investors with strong expertise in energy and infrastructure. We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable and affordable power to the grid.”
Construction is being carried out by M.A. Mortenson Company, a leading EPC contractor with extensive experience in battery energy storage projects. Each site will deploy Sungrow Power Supply Co., Ltd.’s PowerTitan 2.0 energy storage platform, a state‑of‑the‑art system renowned for its efficiency and reliability. Upon completion, Tierra Seca and Seven Flags will bolster ERCOT’s grid stability by shifting energy supply to match demand, supporting homes and businesses across Texas with clean, dispatchable power.
Spearmint Energy was advised by Paul Hastings LLP. Day Pitney LLP represented Manulife in its CTL financing, while Milbank LLP acted for East West Bank and Investec in arranging the TEBL facilities. Leverage Law Group, LLC served as counsel to Sugar Creek Capital on its tax equity commitment.
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